Advertising Agencies
These service-based firms provide strategic consulting, creative development, and media buying services to help client companies promote their brands and products.
Why it exists
Advertising agencies exist to translate business goals into demand by shaping perception, attention, and behavior.
Why it’s necessary
In competitive markets, products don’t win on merit alone. They win on awareness, positioning, messaging, and narrative discipline.
Key components
Strategy & brand positioning
Creative development
Media planning & buying
Analytics, attribution, and optimization
How to evaluate businesses
Evaluate client retention, share of wallet, margin per client, media buying leverage, and exposure to cyclical ad spend. Agencies with proprietary data, performance-based pricing, or vertical specialization tend to hold value better than pure creative shops.
How the industry could be improved
True closed-loop attribution, AI-generated creative at scale, real-time campaign optimization, outcome-based pricing, and tighter integration with sales and revenue systems—not just brand metrics.